CSRD – the EU’s new law for sustainability reporting makes it business-critical to understand and manage environmental impact. Compliance requires more than data collection: it demands actionable insights and measurable improvements. Here, IoT plays a central role. With smart sensors and real-time data, organizations can accurately measure, analyze and reduce their climate footprint while meeting regulatory requirements.
Looking back three decades, our employees began by building wireless radio networks that became the backbone of remote communications. These networks connected machines without cables or fixed infrastructure, allowing robust data transmission long before the term IoT was coined. The technology reduced travel, enabled faster responses and cut costs. Today we speak of smart connected devices, but the goal remains the same: greater efficiency, fewer journeys and better resource use.
IoT as a tool for climate benefit
At the turn of 2024, sustainability was at the top of the agenda for many decision-makers. Despite shifts in politics worldwide, environmental issues retain momentum. An influential report from the World Economic Forum found that around 85% of IoT initiatives support the UN Sustainable Development Goals, demonstrating IoT’s broad alignment with global sustainability priorities.
For example, Volvo Group adopted IoT early in its production processes and achieved a 30% reduction in energy consumption. From energy management to waste optimization, IoT provides the foundation for sustainable improvements across industries.
Digitalization supporting CSRD
The new EU regulation CSRD (Corporate Sustainability Reporting Directive) requires companies to disclose their climate impact. IoT enables organizations to collect real-time data on energy use, water consumption and other environmental indicators, forming a data-driven basis for targets and corrective actions. This not only simplifies reporting but also strengthens long-term competitiveness by aligning operations with regulatory and market expectations.
Preventive maintenance — smart and resource-efficient
As early as 1999, Kevin Ashton described how technology could predict when equipment needs service. Today that vision is reality. Predictive maintenance avoids unexpected downtime and resource waste by forecasting failures before they occur. Studies show predictive maintenance can cut maintenance costs by 10–20% and reduce unplanned outages by up to 25%, leading to lower material use, fewer service trips and more sustainable processes.
Smart energy metering in existing buildings
Nearly 20% of Sweden’s homes were built during the “million programme.” While generally durable, many of these buildings are inefficient to heat. The EU aims to reduce greenhouse gas emissions by at least 55% by 2030, yet around 75% of buildings today are energy-intensive. Older properties often lack systems for remote monitoring, which complicates efforts to improve efficiency.
The solution is to retrofit buildings with smart metering. IoT sensors give property owners precise information about energy use, enabling targeted investments that reduce emissions and improve comfort.
AI and IoT for intelligent waste management
Combining AI with IoT opens new possibilities for waste handling. Cameras and image recognition sensors can classify waste in real time, improving sorting accuracy and reducing contamination. These systems cut operating costs, decrease misdeliveries and save time. Machine learning further improves classification as systems learn from more data, increasing efficiency over time.
Reduce water consumption in buildings
A leaking toilet can waste up to 400 liters of water per day. IoT sensors make it easy to detect and fix leaks before they become costly. Real-time monitoring reveals patterns and anomalies so facility managers can act immediately.
In homes, sensors that measure shower duration and provide instant feedback have been shown to reduce shower time by around 33%, resulting in substantial savings in hot water and energy.
IoT as the future’s sustainability tool
IoT has already become a key enabler for sustainable development, and its potential is even greater. With AI, future systems will not only measure and analyze but also act automatically in real time. Achieving this requires commitment to energy-efficient, circular and durable IoT solutions.
Responsible IoT development means designing smarter algorithms, reducing data volumes, and choosing low-power components. The focus must remain on sustainable outcomes rather than technology for its own sake.
From measurements to action
IoT has evolved from an efficiency tool into a decisive instrument for climate action. From intelligent buildings and predictive maintenance to water savings and AI-driven waste management, the technology delivers both business value and environmental benefits.
By investing in IoT solutions now, companies, property owners and communities can take meaningful steps toward a sustainable future. The question is no longer if they should act, but when.